Enbridge Line 3: Dead -- June 3, 2019

This is not an unimportant pipeline.

But it is what it is: another "blow" for Canada.

From oilprice:

Enbridge’s Line 3 pipeline replacement project ran into another unsurprising roadblock on Monday after a Minnesota State Court of Appeals ruled that its environmental assessment just wasn’t good enough. The ruling is a reversal of Minnesota Public Utilities Commission’s decision that approved the environmental impact statement for the pipeline replacement.

The project plans to replace Enbridge’s existing 282 miles of 34-inch pipeline with 337 miles of 36-inch pipe. The appellate court found today that the Commission erred when it approved the plan, and found that Enbridge’s environmental impact statement lacked in specificity, specifically where it deals with oil spills in relation to Lake Superior.

The new Line 3 would have the capacity to move 370,000 barrels of oil per day, alleviating the takeaway capacity constraints that Canada is facing. Line 3 is one of two pipeline projects in the works that are—in their unfinished state—keeping Canada’s oil industry from reaching its potential.

At least Enbridge knows what it needs to do: improve its emergency response to any oil spills "in relation" to Lake Superior.

One would think if the emergency response plan is lacking for a new pipeline, the same response plan is inadequate for an aging pipeline. Perhaps the state needs to shut down Line 3 altogether. 

Short term great news for Enbridge investors. No money being spent on an expensive replacement project.

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Operator, Jim Croce